Page 10 - New Jersey Cooperator February 2019

10 THE NEW JERSEY COOPERATOR —FEBRUARY 2019 NJCOOPERATOR.COM O ne of the most important fac- tors in the decision to purchase a condominium or co-op is life- style. Many who live in residential com- munities, particularly those in single- family HOAs, choose community living over a single-family home for the conve- nience of what they don’t have to do: no snow shoveling, no grass mowing, and no cleaning the gutters or falling off the lad- der while doing it. Like renters who can “call the super,” co-op and condo owners can do the same or call their managing agent. And like magic, things get done. But what happens when there’s no managing agent? What happens when the property is self-managed, and the manag- ing agent becomes you? Why Self-Manage? With outside management a typical characteristic of co-op and condo life, why do some associations and corpo- rations choose to manage themselves? Oft en, it’s a matter of size. Management agents generally have a minimum month- ly charge per building or per unit, and that charge can be more than the indi- vidual owners can handle. For the sake of argument, consider a building or associa- tion for which the minimum charge for management services is $500 per month. Th at’s $6,000 per year. In a 50-unit prop- erty, that would come to $10 per month and unit. In a 25-unit property, that would come to $20 per month and unit. In a fi ve-unit property, the management fee turns into $100 per month and unit. Th at’s a big chunk of monthly common charges or maintenance, and it’s not tax deductible. So property size is the single biggest contributing factor to the choice to self-manage. In addition to all that, another part of the appeal of managing oneself has less to do with money and more to do with com- munity, regardless of size. “Most manage- ment companies would not be here on a full-time basis,” says Domenick Lorelli, former president of the Sonata Bay Club, an active adult community in Bayville, New Jersey, which has been managing itself since 1993. “Th ere are two big ben- efi ts to self-managing: the fi rst is that it’s cheaper, and the second is the accessibil- ity and you know the people personally. A property manager is here only on a part-time basis. So you don’t have access to any answers or solutions to your ques- tions or problems until they are on-site. Whereas with self-management, the peo- ple live here, and they are on site every- day of the week. Th ey can be available to talk to, or if you have any problems you Self-Management Strategies Smart Business for Busy Boards BY A J SIDRANSKY BOARD RELATIONSHIPS You get what you inspect not what you expect Professionally Managing Properties in New Jersey and New York for over 25 years Transparency Accountability Proven Systems Experience Cervelli Real Estate & Property Management 1 Marine Plaza, Suite 304 North Bergen, NJ 07047 james@realestatenj.com www.realestatenj.com P:201.868.6300 F:201.868.6055 ISTOCKPHOTO.COM